AGRICULTURAL RELIEF

483

bill: On the average we raise about 800,000,000 bushels of wheat in
this country. Suppose the board finds the domestic consumption
to be 600,000,000, and we have therefore got 200,600,000 surplus,
and they say, this cooperative or marketing agency, “You gentlemen
oo out and buy this 200,000,000 bushels of wheat and take it off the
market and store it, or whatever is best to do with it.” Of course,
it will be up to that cooperative or that corporation to buy that
200,000,000 bushels of wheat as cheaply as they can in order to keep
down the equalization fee as small as possible.

Mr. CaverNo. They would have to take it at whatever the
market level happened to be.

Mr. KiNncHELOE. I say, on the market level.

Mr. CaverNo. Not on the market level.

Mr. KincHELOE. Wheat is always sold on the world’s price.

Mr. Cavervo. If I could have begun where I wanted to and not
been interrupted by Doctor Aswell—

Mr. KincHELOE. I am getting down to this: I am asking you, do
you not think it is the natural thing for this cooperative or this cor-
poration knowing that we need 600,000,000 bushels of wheat for our
home consumption, and we have got 800,000,000 bushels in the coun-
try, and therefore we are going to take 200,000,000 bushels off the
market, that they would go out and buy as cheap as they could?

Mr. CaverNo. They should not if they were trying to operate
under the intentions of the bill.

Mr. KincHELOE. What should they do?

Mr. CaverNo. That is not regular business; this is inverse busi-
ness. The object is not to get stuff away from the producer as cheap
as you can, but to give them as much as you can.

Mr. KincHELOE. Of course, the price would be lower when they
bought it before they take 200,000,000 bushels off of the market than
it would afterwards, would it not?

Mr. Caverno. I do not see that it operates that way at all.

Mr. KincHELOE. Would not the purpose of this bill be in taking
200,000,000 bushels off of the market to increase the domestic price?

Mr. Caver~o. Let me give you an illustration——

Mr. KincHELOE. I am not caring anything about your illustration.
The point I am trying to make is that these corporations would go
out and buy at whatever the market price is. It is the hope of this
bill that after you take the 200,000,000 bushel surplus off that that
Poni increase the domestic price at least to the extent of the tanff
wall.

Mr. Caveryo. You would not have to take 200,000.000 bushels
off to increase the domestic price. The minute an agency went onto
the market with as much money as necessary and said, “We are
going to take it off; we are going to take the export wheat in this
country off the market and put the Nation on an import basis,” that
minute the price in this country would increase.

Mr. KincHELOE. You deal in psychology, and I am trying to deal
in facts.

Mr. Caver~o. I am dealing in business facts.

Mr. KincHELOE. I know that if you take 200,000,000 bushels
surplus off the market, with the ability to hold it, that is going to
increase the domestic price for the balance of the 600,000,000. I
do not think for vou to sav that vou are going to do it it would increase